You are here: Home - Insurance - News -

Labour: social care reforms will not stimulate insurance market

Written by:
Labour has challenged the health secretary’s claims that the introduction of a cap on care fees would kick-start insurance solutions.
Labour: social care reforms will not stimulate insurance market

Yesterday, health secretary Jeremy Hunt introduced a programme of reforms including a £75,000 cap on care costs and a means-test threshold of £123,000.

This will be funded by National Insurance contributions released by the end of the state pension contracting out regime and freezing the inheritance tax threshold at £325,000.

Hunt said with costs capped at £75,000 it would be easier for individuals to plan and obtain insurance. He claimed insurers and financial services would make products available as a result of this certainty.

He added: “Just as people make provision for their pensions, so we also need to be a country where people prepare for their social care as well. There will be a wider range of financial products becoming available in the market.”

However, shadow health secretary Andy Burnham questioned how an insurance market would develop. He pointed out that the Association of British Insurers had previously said a pre-funded insurance market would not be realistic.

Barbara Keeley, a Labour MP and advocate for social care described a response from the insurance market as “wishful thinking of the highest order.” She questioned how the UK could have a resurgence of pre-funded insurance products when it doesn’t exist elsewhere.

Meanwhile, Danny Cox of Hargreaves Lansdown said it was highly unlikely insurance companies would re-create pre-funded long term care insurance schemes after their fingers were burnt the last time they tried them.

Tag Box




Financial fitness

There are 0 Comment(s)

After an award-winning health insurance provider?

Winner of best online health care provider in the Your Money Awards 2015

Guide to Self-Employed Mortgages

Download/watch our Guide/video on Self-Employed Mortgages, produced in association with Precise Mortgages. ...

BNY Mellon launches investment guide for women

BNY Mellon has produced a free ‘Guide to Investing for Women' to provide an introduction to investing and lo...

Your ultimate guide to the new ISA rules

As the new ISA – or "NISA" – rules come into force, we explain what has changed and how you can benefit.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Top tips for protecting yourself online

One in six adults has fallen victim to a cyber-attack, according to new research from Experian.

BLOG: Top tips for would-be entrepreneurs

As Global Entrepreneurship Week draws to a close James Benamor teaches Your Money how to get a business off th...

Stock tips from top fund manager: IP Group

James Henderson, manager of the Lowland Investment Company and Henderson Opportunities Trust, selects IP Group...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week